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Utah VA Streamline Refinance: The VA IRRRL Refinance Mortgage Program
This Utah VA Streamline Refinance information is up to date and accurate as of today September 26th, 2012. Utah VA Loan guidelines often change so if you are reviewing VA Streamline Refinance information from anywhere different on the world wide web, always double check to ensure the information is current.
What is a [geocity] Utah VA Streamline Refinance / Utah VA Loan?
VA IRRRL Loans are a special loan program designed specifically for veterans, issued by approved lenders and insured or guaranteed by the department of veterans affairs or the federal government. The VA Streamline Refinance is the most common loan type within the Utah VA loan umbrella, and is officially known as an Interest Rate Reduction Refinance Loan (IRRRL) by the VA.
The VA loan’s greatest distinction is that veterans with decent credit and satisfactory income can purchase a home with zero money down, which makes buying a home with a va loan the best option for those who have served in the military. In addition, VA loans also offer, no private mortgage insurance (PMI), which saves borrowers thousands of dollars annually.
In order to qualify for a VA Loan, a veteran must have served 181 days during peacetime, 90 days during war time, or 6 years in the Reserves or National Guard. You may also qualify as the spouse of a service member who was killed in the line of duty. Typically, almost all active duty and/or honorably discharged service members are eligible for a VA purchase or VA streamline refinance loan.
The VA Streamline Refinance (IRRRL) Loan
The Interest Rate Reduction Loan allows you to refinance your current Utah VA Loan interest rate to a lower rate than you are currently paying. The Utah VA Streamline Refinance is extremely popular because of its simplicity.
With a Utah VA Streamline Refinance closing costs can be rolled into the cost of the loan, allowing veterans to refinance with no out-of-pocket expenses. Often we as the lender pay all of the closing costs in exchange for a higher interest rate on the VA loan.
In order to qualify for a VA Streamline, you must meet the following requirements:
• Be current on your mortgage with no more than one 30-day late payment within the past year.
• Your new monthly payment for the IRRRL must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an ARM to a fixed rate mortgage.)
• You must not receive any cash from the IRRRL.
• You must certify that you previously occupied the property.
• You must have previously used your California VA Loan eligibility on the property you intend to refinance. (You may see this referred to as a VA to VA refinance.)
The VA Cash-Out Refinance Loan
A secondary Utah VA loan type is the VA Cash-Out refinance loan. The Cash-Out refinance allows borrowers to refinance their conventional or Utah VA loan into a lower rate while also taking cash from the home’s value.
Functionally, the VA Cash-Out refinance loan replaces your existing mortgage instead of functioning like a home equity loan, which it is often confused for. VA allows A qualified borrower can refinance up to 100 percent of their home’s value, but most lenders cap this at 90%.
The Cash-Out refinance loan is a loan type available in any form – whether USDA, FHA, or conventional. Veterans generally choose to use the VA Cash-Out over other loan types because the period to pay off the loan is extended, and also, typically comes with a lower interest rate.
Just like the Utah VA Streamline Refinance loan, the home must be used as a principal dwelling by the owner. There is no set period of time that you must have owned your home, however, you must have sufficient equity to qualify for the loan.
VA Streamline Refinance Frequently Asked Questions
Do I need my Certificate of Eligibility (COE) for a Utah VA Streamline Refinance?
Since you used your Certificate of Eligibility to get your first Utah VA loan, it isn’t needed to qualify for a streamline refinance of your existing VA mortgage.
Does the VA control national interest rates for all Utah VA loan types?
No, they do not. Although the VA offers an easy, straightforward process for veterans, the rates are set by the banks who buy and sell mortgages.
Do I have to go through the credit check and appraisal process again when refinancing?
There is no requirement from the VA for another credit check or appraisal process, because you have already been approved for a loan. However, many lenders (especially if you swap them), require a credit check and appraisal to guarantee that you are still financially stable enough to pay for your mortgage and also, that the house’s market value is still higher than their maximum loan amount.
Do I have to be eligible for a better interest rate to qualify for a Utah VA Streamline Refinance?
Not if you meet certain conditions. If you are going from a fixed mortgage to another fixed mortgage, the VA requires that your IRRRL be of a lower interest rate, but if you are moving from an adjustable rate mortgage (ARM) to a fixed rate mortgage, the VA will allow you to refinance to a higher interest rate. Click here to check today’s VA mortgage rates.
Do VA loans qualify for the HARP 2.0 program?
No, the HARP 2.0 program is not eligible for a Utah VA loan. If you current mortgage is underwater, some lenders will be able to refinance your California VA loan using the IRRRL. However, many lenders will not want to service your loan because they view it too risky to take on. To see if you qualify, get a free VA streamline quote today.
Yes. The VA loan allows for 100% financing with no downpayment. Get a 100% VA loan purchase quote today.
The Utah VA Streamline Refinance is one of the best mortgage products available for consumers today. If you have an existing Utah VA loan, get started immediately with a Utah VA Streamline Refinance rate quote. Mortgage rates are low, so it’s a great time to take advantage of your veteran benefits.